Chart EUR/USD Update: Pressuring 1.1600 - room for still lower
Cautious trade has drifted lower to congestion support at 1.1600
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.1900 | ** | Jul-Sep 2021 break level | S1 | 1.1600 | * | congestion | |
| R3 | 1.1830 | ** | 1 Jul YTD high | S2 | 1.1500 | ** | congestion | |
| R2 | 1.1750 | * | break level | S3 | 1.1400 | ** | congestion | |
| R1 | 1.1700 | * | congestion | S4 | 1.1360 | ** | 61.8% ret of May-Jul rally |
*Asterisk denotes strength of level
08:30 BST - Cautious trade has drifted lower to congestion support at 1.1600, where oversold intraday studies are prompting short-term reactions. Daily stochastics are falling and the daily Tension Indicator is under pressure, highlighting room for further losses in the coming sessions. A break will add weight to sentiment and open up the 1.1528 low of 5 August and further congestion around 1.1500. However, falling weekly stochastics are showing early signs of stabilising in oversold areas, suggesting initial tests of this range could give way to fresh consolidation. Meanwhile, resistance remains at congestion around 1.1700. A close above here, if seen, will open up 1.1750, where fresh selling interest is expected to appear.